I have been receiving payments into my personal savings account with a popular nationalized bank in India all these years. The account is a savings account, and I got a call from them just now and they are telling me that I shouldn't be receiving any more business payments into my savings account and that I should be opening a personal current account or a business current account for that. When I asked them why now after about 2 years of transactions since Paypal started bank withdrawals in India, they tell me that they have got new regulations now. Is the bank just trying to make me open a current account so that they can charge me the book keeping fees of current accounts, or is it really an RBI regulation and is it going to affect everyone using paypal? Afaik there are certain restrictions on Savings accounts with nationalized banks, but as I file my tax as a computer professional, no one has yet asked me why I have so many transactions on my savings bank account.
Well that's new news ... we can expect more mess in the future. Anybody else got such a call? @RDJLabs approx how much (I don't want the figure just and estimate) are you earning/transferring per month/year? Also is you account a business PayPal or premium?
its a premium paypal, and monthly withdrawals crosses 200k inr at times, and at other times its under 50k inr. I know private banks wouldn't give a damn, but I hate to work with them and would trust only Nationalized banks.
Visit the bank and ask the manager.If they conv. you to open a current account then also its not a big deal.There is No fees but you usuallu have to keep a minimum balance in current account and you did not interest. So just move out all funds from current keeping minimum balance to saving and No one can bother you.
Its Obviously You are withdrawing lakhs of Inr and its a Govt. Bank . ( Pan System activated by RBI) WE ARE ALL UNDER SCAN ..... Those who are earning money through ONLINE. We all will be getting BUSTED...... Due to TAX As we Move On ... You will Notice.... WE WILL BE GIVING THEM TAXES...... for ONline..... T_D
FALSE STATEMENT NOTHing required.Just goto bank and open current account with ID proof,address proof etc... if you are individual
Indian banks or RBI going mad , why on earth they want to shake the well going online business from india. i really hate now for being trapped under these regulations.
I can confirm,I don't have any Trade licenece and I opened a current account in Personal name as well as 2 current accounts in Company name in HDFC and AXIS bank. For company accounts you haveto submit lot of papers like memorandum,Registration papers etc... but for Individual its staright Forward. and do you know what is a Trade License ? In India there is no such thing.
I am surprised that you have got a call for such transactions! I am sure your bank is just enticing you to open a current account as they have to pay you interest on your balance in your savings account... while they can freely use your funds in your current account without any fees! I would say... switch to a good private bank like HDFC! Regards, RightMan
Looking at the thread title, really scared me Over the years, the services of nationalized banks have become so pathetic. They cant handle too many clients and their customer service sucks i would close account with them and move to another bank.
HDFC is good? I quit banking with them soon as they started charing me Rs 50 for each home branch cash deposit and Rs 50 for each Non home branch check cleared which is absolutely free with govt banks. Why waste money in fees paid to banks? I don't think the service is any different from what you get in govt banks. In my current bank I get to talk to teh manager who is a lot smarter and can answer my questions precisely than the idiots at the phone banking centers of the private banks. I still support govt banks, I am just worried that RBI has put up a new rule or something about these business payments with the Purpose code being sent to a savings account.
from HDFC site Regular current account Eligibility The following are eligible to operate a Regular Current Account Resident Individuals. Hindu Undivided Families. Sole Proprietorship Firms. Partnership firms. Limited companies. Trust Accounts. Association/ Clubs/ Societies. Foreign Institutional Investors. Foreign nationals residing in India. Limited Liability Partnership. All you need is to maintain an average balance of Rs.10,000/- per quarter. (Non-maintenance of this balance entails a nominal charge of Rs. 750/-).
Yaa, I had checked that.. Mate!! I was not sure earlier as SBI had said me few months back that they need a trade license for current a/c and also many of my friends those who are into real time business (not online or internet business) possess Trade License.. so cant agree with the fact that it doesnot exist in India at all.. It is basically issued by local authorities like municipal corporations.. cheers.. no hard feelings...